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tv   Countdown to the Closing Bell  FOX Business  March 25, 2013 3:00pm-4:00pm EDT

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bank that have low inflation target, keep interest rates low, at the same time differences across the countries in terms of the stage of the cycle. it is a mixed picture. not the same complexities of the 30s of dealing with the rates very low. what inflationary impact we see during the 30s, for example not only in the u.s. but in germany and elsewhere. we are not at that point either. i don't have a clean answer for you. there are some obvious advantages of a unified currency, but in a situation we have now, there are also clearly some differences in abilities to adjust.
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so to some extent you can build the union where one may not think it exists naturally. >> question in the lower tier. >> on the currency, it remains basically i hate to say that gold status. it is clear it was known from the start to satisfy all the conditions and benefits, have some cost. learn about some of the cost in the economic developments. what is interesting is there are at least two elements left out
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in the analysis. the fiscal union and the bernanke union which we did not fully understand. in thinking about how it could work. >> microphone coming from behind. >> thank you very much. i am elected member here. my question touches upon mary's sentiments, so would like to know from each of you would do for the purpose of economic growth and prosperity? i personally believe it's to better improve people's well-being, feel free to disagree with me. how can we best leave it to achieve that well-being in particular over the next 20 or so years with up to 2030. >> a great question on which to end.
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but they go to the panel. >> one of the questions is losing the monetary and fiscal policies if there is a set of generations that aren't around the table. a lot of what we are seeing now is basically trying to achieve a dynamic in the economy that is unsustainable long-term and therefore we come to the detriment of future generations and therefore i am quite concerned that keeping monetary and fiscal policies very loose for an unsustainable long period of time might generate numbers we see now that looks good for current generations but actually come at the expense of future generations. i'm quite concerned in whether we are really trying to counter something that would look at as being typical, but if it is more structural would look to a lot
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of stimulus at it and undermine the future. i'm quite concerned about that aspect of what we are doing. >> thank you. >> i think you have it right. he spoke of allowing people to have higher living standards, more choices in their lives and a little bit more comfortably. i can't resist taking the opportunity though to disagree with the broad spirits of his last comment. i do not leave the long run can be seated to the avatars of austerity. i am the father or stepfather of six children and on their behalf i am concerned about the possibility overly inflationary psychology will develop in my country.
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yes, on their behalf i am concerned that an excessive debt will be placed upon them. but i am vastly more concerned because i care about their long-run future that a slack economy will not provide satisfactory jobs when they leave school. i am more concerned on behalf of their future that they will live in a country with the cane infrastructure that will not permit investment maintains leadership. i am more concerned on their behalf that inadequate resources forced by austerity will stunt the ability of their generation to be educated. i am more concerned on their behalf that austerity measures
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will lead to slower economic growth and a consequence to a higher gdp ratio and more pressure in terms of higher tax burdens in the future. those concerns come out of the proper management and current conditions seems to me to be a larger concern for the long run and the concern that somehow unstable policy starting from where we are now will stunt the opportunities that are open. obviously starting at a different place, i would reach a different judgment, but starting with the united states for much of europe or the industrialized world is today seems to me the risks of profound stagnation are more pressing concern than the
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risks of a resurrection of stagnation. >> i am not a gold freak, the work unhappiness to which it is sitting in the front row strikes me as extremely relevant. this being said, again from engineering, it is very hard to see how europe is going to get out of its fiscal mess in particular. maintaining some substantial goals in the two decades and so i think we have to focus the policies which increase gold in europe. at which point we can have another meeting. >> the final word.
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>> suppose you had a choice between the same level of gdp in the uk as we had today but higher employment. which would you take? an economist would tell you the lower employment because it is valuable. that shows you how economists think. why is it when we look at the data at the federal reserve will get the gdp growth levels and unemployment rate. they have a separate welfare implication holding constant the amount of output with distributional issues, personal dignity and opportunity, it is one way in which economists aren't knowledge in the macroeconomic utility function
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is not quite enough to capture all the things that matter to people in the economy. >> had the chance to listen to for wonderful economies. now inviting back. liz: there you have it, welcome to "countdown to the closing bell." the treasury secretary on stage, out of all of them, the american, uk, french and german economic leader, only the german expressed true short-term worry about all these developed economies especially the u.s. are running very easy monetary policy buying up a lot of financial instruments and easing, constantly easing. other economists have just wrapped up kind of a pretty interesting panel. you don't see congress do not that often.
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what is the most important thing you just heard, peter? peter: i'm still cracking up at some of those jokes. those guys were hysterical. the austerity versus growth trying to grow the u.s. and grow their way out of their problems so we heard other viewpoints they are. but no new news on cyprus. one of the panelists hinted at it at the end, but we did not hear much from bernanke on the future of monetary policy in the united states but mounted a defense using money, connotati t two totals. but ben bernanke distric dismisg critics who say they are devaluing the currency to
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exports, boost economic growth. it didn't mention any country by @ame, but japan, the yen has tanked. bernanke asked in his remarks does it constitute continued devaluation? no. >> the benefits in the event economies is not created any benefit way by the change in exchange rates. they come from the support of their demands in each country or region. peter: bernanke added it is strengthened by advanced policy helping other countries, help their neighbors because of higher consumer and desist demand for goods from them, from everywhere. liz: have you ever seen these guys like that?
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liz: thank you so much. we're going to start showing you how currencies are trading right now in response too much of the currency were discussion and the cyprus situation. a real flight to quality and in the u.s. dollar. let's bring in the traders, the cme group and the nymex. what you see is we lost another 10 points or so, now down 77, is it that, or a bailout that is moving the markets now? >> this morning there was a lot of conversation about the fallout of this deal, a good temporary fix, the question is will this be able to happen anywhere else?
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i think that is something people have yet to figure out. we still have to see what the fallout will be, but that was weighing on the market a little bit this morning. a lot of people are away. very strong dollar this morning. liz: we are showing that right now, $1.28 and change, the euro is really getting hammered now. you are in chicago looking at the response whether this commodities or anything else, but at the moment the uk pound and the euro down against the u.s. dollar. the dollar will continue to be what it is against the yen, so what do you make of all of this? >> the euro is really taking a pounding, but on the other hand the other indicators aren't really moving. we are not seeing anything that
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leads you to believe this is definitely a risk, but this is a potential problem in europe. if this goes beyond cyprus, the people in the countries who may have another bailout decide to move their money. they have a problem. liz: the vix is still below 14 with all the concern of cyprus, the tiny island nation, does this surprise you we're still in this volatility index? >> i am wondering everyday who is selling the vix at this level? i don't seem to be able to have any copy how much they can sell. liz: the one thing that is interesting is even with a stronger dollar, we're looking at stronger crude oil and stronger checks so as you see what is going on, does that surprise you at all? is this due to some other data that we should not be ignoring today?
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>> not really. we got right up to the long-term trend where we settled about $94.80, at the very top of the channel. today the market roque through it, it would make a move in the early morning when the dollar was a little weaker. i strengthened, the market came up and crude oil came up with it going all the way down to even on the day here. this is a market again looks like it is a rally. i am a little bullish on the dollar like some of my colleagues and i think the market is going to work its way lower in the next two to three weeks. liz: the dollar and the canadian dollar look pretty decent today. it has developed into an interesting day in the last 17 minutes or so. the cyprus situation. the closing bell ringing in 46 minutes.
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cyprus made a deal, whether that metal to you? will it help or will it hurt all of us? rich edson on the ground talking to people there. only 800,000 people or so, but it is affecting the global market. and what sequester? up nearly 20% this year alone. i'm with helping his business skyrocket. if you fly on a plane, you are touching, you're using his product. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure,
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liz: it is a crisis, not just dangerous feeling direct over the last deals, people all over the tiny nation are wondering about what happens next. and frankly, you are there, could it happen here? >> good evening, liz. he says he understands the deal the bailout are painful but this is the best under the circumstances. they will be able to go to bank the first time in more than a
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week except for the two that are part of this resolution as part of the bailout agreement read official telling the "wall street journal" the amounts of 10 million euros, but that can be confiscated. this eight times the size of the gross domestic product, so folks understand when you are shrinking the banking sector takes two takes a hit on the economy and they understand how vital banking is to their economy. >> you just break down the economy of cyprus because this is banks and tourism. if you break down the banks, it is over, it is a very small country.
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>> earlier today the euro chairman said it was a good model for europe and they should consider reducing the size of their bank. an eu official is telling him those remarks were taken out of context and cyprus is a specific case. to you. liz: thank you very much. rich is on the ground and talking to people on the ground in cyprus, looking at the banks, atm machines to see what is happening because it matters here psychologically even though it is a small nation. we're looking at a very close a situation that may affect us so stay tuned with that. breaking news in the last few minutes, a test flight of boeing 78787 dreamliner just took off aiming to restore the service after recent battery problems.
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getting i in the chair, a ceo wh 50% of his entire business coming from boeing. from philadelphia, the triumph group ceo. what do you make of the news, have to be hopeful and thrilled at the same time. >> glad to be here. it is certainly good news for the industry, the 787 problem is one that is probably a little bit more complicated than most development problems you will have with new aircraft, but we always felt time would produce a solution and we have great confidence in his airplane. great confidence in our customer and we're glad to see this taking place so we can get back to having deliveries to our airline customers. they want to operate these aircraft.
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liz: what is it you provide? all kinds of cabins, windows, what is the biggest part of your business? >> singly the biggest part of the business is our aerostructures site in terms of dollars but we provide just about any type of solution for typical boeing aircraft from aerostructures to components, things like the wing and hydraulic systems, landing gear systems, electromechanical systems, you name it. we don't do engines. we do engine parts, but we don't do many of the avionics. liz: you have lockheed, the big military business everybody is talking about military cutbacks, meantime you are a hottie when
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it comes to hedge funds so i'm looking at this saying what is it about triumph? will it get you through the military downturn for what people anticipate to be the sequester? >> what we have been talking about with the public is we see a potential downturn in our defense business but you have to remember in terms of sales, our defense business less than a third of our sales. we have projected about high single-digit sales reduction over the next three years over that time. our company is one i guess comes from how we are structured, companies are flexible. as soon as the actual details of sequestration and what programs will be affected are announced,
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our companies can turn on a dime and escape without much a reduction. liz: thank you very much. it is a great story, talk about hedging. they have both commercial and military, not all of their eggs in one basket. the stock is up 19% year to date, so a good story, he said his full confidence in the dreamliner. that is exclusive on fox business. could an antibiotic apocalypse be on its way? the publicly traded company stopping the germs in its tracks. they have to worry and hear about this. we will be right back. [ engine revving ]
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liz: in the past eight minutes the market started to fall a little bit more steeply. again, low the session down 117 at the moment. here is what is getting hammered, bank of america down 1.8%, the rest of the names down 1%. caterpillar, mcdonald's, and we have fisa down a point. coca-cola flat. a deadly health care associated infection has become difficult and sometimes absolutely impossible to tear. old american hospitals killing a lot of people. working on developing a drug to treat those infections, so far it is really successful so we wanted to bring in dr. jeffrey stein. joining me now in a fox business exclusive. welcome, doctor. let's talk about the drug, why
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we should be watching it so closely. >> thank you for sharing this important day with us. we just announced the results of the last of our two phase three trials and what is important here is we are one step closer to bringing this experimental medicine. liz: skin infections and everything from what we know as mersa killing up to half of the patients once they get them. this is extraordinarily serious. just call it what it is, they catch the skin disease in the hospital, how does this work? >> 100,000 patients in the hospital diabetes resistance infections. it works by inhibiting the
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bacteria ability to make proteins and obviously bacteria needs protein to survive and so if you can arrest the proteins in the bacteriacome it is a great way to kill the pathogen. what it has shown in the study versus a blockbuster drug is that it works in nearly half the time at one-tenth the dose, skip location is we can dose patients initially in the hospital but get them out of the hospital as quickly as possible on a few tablets. 200 milligrams once per day and shown to be highly effective. liz: one of the stipulations is medicare is not going to reimburse hospitals for
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infections people get after being in the hospital, so isn't it interesting how everyone is driven by money, it is perfect for your company. there are competitors, but how do you look at the affordable health care law now and do you look at that and say nothing like incentive to get people creating these kind of things and keeping of a cleaner hospital. >> that is the case. we see this as a great opportunity, because imagine having a drug that enables you to get out of the hospital faster and save on the hospitalization costs because when you look at the cost for treating resistant infections in hospital less than 10% of the cost is the drug cost, the remaining cost is the time and equipment and everything else that is needed for treating these patients, so getting them out of the hospital on a single tablet over a short course of therapy increases the compliance
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rate and lack of compliance is what leads to this growing problem of resistance. liz: up about 40% year-over-year. you have two other programs in the pipeline. i say you are a takeover target for the boys who want real intellectual stimulation from companies like yours that can help them come is that something you would look at where would you like to remain independent? >> we're focusing getting revelatory filings for the u.s. and europe in place. we cannot speculate on takeover speculation, but we will evaluate as it arrives, but our focus is getting the medicine in the hands of patients and those physicians. liz: thank you so much. keep us healthy in the hospital.
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amazing performance. the closing bell in 26 minutes, the battle for dell is heating up, throwing the used punches. charlie gasparino has exclusive goofy news walking down the hallway. i wonder if he missed me. we went out and asked people a simple question:
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dennis: i'm dennis kneale kneale with your fox business rates. cyprus has a country rattling
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wall street. traders were the drastic move to the bailout might read them in stock down for much of the day after hitting new record highs earlier today. the senate banking committee chairman reportedly won't run for reelection next year. according to dow jones, he plans to announce his retirement tomorrow. his office said a press conference for tomorrow afternoon. if you wish here's a believe in open seat on the banking committee. johnson & johnson recalling more than 2 million blood glucose meters worldwide. centimeters failed to operate properly at extremely high glucose readings. that's when outside u.s. and no direct link to the meter has been determined. now continuing our "countdown to the closing bell" with liz claman.
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liz: it is the battl battle of e titans, let's be honest, but the bidding war for dell is powering up. nicole: michael dell stepping into the ring with his bid 24.4 billion now of course you have to go with the right of every company, two other bidders coming in and blackstone proposing to buy the company for 14.25 per share. carl icahn wanting to buy 58% of shares, so they have to weigh all of these. the blackstone offer is management friendly, but we will continue to watch that very carefully. you can see the stock up about 3%. liz: what does it say that michael dell has the junk used
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bid. they are throwing some sharp elbows, charlie, what do you think? charlie: michael dell, silver lake, 13.55. carl icahn $15. you cannot take carl icahn series on this, he is a smart guy, but he is in for the ride. i think you can discount his bid. trading $14.55, just a slight increment over the 14.25. the question becomes major private equity firm, morgan stanley says they have the financing.
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it is not a bank. doesn't have capital of jpmorgan, morgan stanley 22% owned a mission bc. this is an agreement between the two firms did in fact the financial crisis where these we helped bail them out in 2008. from what i understand, from morgan stanley, they will put up a lot or part of the financing, probably coming with debt that is cheap right now. they are negative zero over there. liz: the stock 14.55 right now. >> many are surprised there is this much interest. blackstone is interesting.
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they will make money off of the advisory fees, so take them out of it, but blackstone, i believe is a former partner at lex own that had worked at dell. i think there are some synergies here. there is some connection with dell or silver lake or something. liz: raise your hands if you have a dell computer. charlie: if there is a business here. have you ever seen my cell phone? here is the theory, they can change, it is easier to do that
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as a private company a to post a public company. that was the theory behind the silverlake deal, the blackstone bid on this thing you can retool it. like ibm did it much earlier, a different firm. a big-time consulting firm on technology. little different. now to retool like that, everybody is very short-term oriented. you can retool if you are carl icahn. this guy has been taken serious, he knows about as much about computers as knows about herbalife shakes, zero. i am not saying, ever listen to him talk about the herbalife shakes? can you imagine.
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liz: do not count carl icahn out. it used to be called green mailing, nowadays activist investing. liz: did you miss me? charlie: were you gone? liz: that is not funny. are you happy with returns your portfolio is giving you? are you at least beating the s&p? doubling the returns of the s&p 500 over the past year. fund manager up next his last pick up more than 50%, he has some new ones for you. tor. but that doesn'mean i don't want to make money. i ve making money. i try to be smart with my instments. i also try to keep my costs down.
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liz: you have got to hear this. it might excite you or make you annoyed. last time he was here in september he told you to buy texas industries. we hope you do because since then shares are up 55%. here is your second chance. breaking down the fundamentals. good to see you. what was it about texas instruments you saw something in and thought there would be short-term real again. >> i have worked a lot on housing and things affecting houston, texas industry was one of the few plays for texas and california, very cheap. liz: and he said that is it, that is what i want to do. let's talk about the macro picture for a second.
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cyprus, does it change your attitude of the u.s. market investing in stocks, per se? >> we have a fund that focuses on the domestic economy. things are good here. liz: let's talk about that. look at the chart, it is up 28% over the past year. obviously benchmark up 14.3%, more than doubled. when it comes to picking stocks, give us some categories were some metrics of how you pick stocks. >> we were looking for cheap things. some of them aren't making money. they're usually a problem, but what we are looking for as importantly these things can get better over the next year and a half, two years. if you can find situations you think they will correct, you can make a lot of money. liz: these are the next big things you really like right now.
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>> what they are able do is pretty simple, borrow money at very low rates and good properties with good occupancy. shortage in some cities so it is helpful to their return. liz: let me stick with that, goldman sachs downgraded this one. >> we like when people cover our stuff, so getting it downgraded its pretty rare for us. liz: and natural gas company. >> simple transport, the transport things taken out in the process of refining gas, natural gas or crude oil and transported from places like singapore, malaysia and other smaller ports in asia.
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transferring things like propane in developed economies. liz: back in the day it was 14. $10 below what it used to be. and our third pick. >> this is a similar story, defense and security business which generally is not considered a great place to be, they have specialized situations, security part of the defense industry and a lot of special work, black ops type work. they generate a lot of cash, it is a very slow time for the industry as a whole. liz: is there a minimum required for investors?
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the return, 28% over the past year. ithat does not guarantee future returns, but are you hopeful? >> i am hopeful. liz: i don't care about gordon gecko, i like bill hench. we will put his stock picks on our facebook page. the closing bell ringing in five minutes. as cyprus contagion fears take over, i will show you what stocks are hitting all-time highs today even as you see red on the screen today. stay tuned, we are coming right back. [ kitt ] you know what's impressive? aalking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel.
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